Sold house under auction conditions, buyers paid 10% non refundable deposit, negotiation question

t1redmonkey

I accepted an offer last week pre-auction for my house, but it is still being sold under auction conditions.  So the buyers have had to pay a 10% non refundable deposit.  They haven't had a survey yet and I'm not sure if they intend on getting one done (apparently it's 2 property developers that have bought it).  However, I am wondering that if they do get a survey and if it reveals any works that need doing and subsequently they try and negotiate the price downwards, what would you suggest I do? 

From what I've been told, the 10% deposit goes to me if they do not complete the purchase, so it feels like I have leverage to flat out refuse any negotiations, but not really sure if that's the best way to respond if that does happen.  I do want to just complete really, and if this doesn't go through then I'd have to wait another 2 months for the next auction for the auctioneers to market it again.  Of course I could just be worrying about nothing and nothing like this might happen, but I am just trying to be prepared for this circumstance if it does happen.

user1977

I think you are worrying about nothing - property developers (or any other buyers with any sense), if they need a survey, would be getting that before concluding a contract and handing over a deposit.

anselld

If it is traditional auction conditions ( not modern method or anything weird like that) then there is nothing to worry about.  You have effectively exchanged contracts and both parties are contractually obliged to proceed.  There is no opportunity for renegotiation.

canaldumidi

As above.Howver to be sure, read the auction terms and/or whatever was contractually signed when the deposit was paid!

Do you have a conveyancer? Have you asked them?

eddddy

Check the auction terms and conditions, but assuming it's a standard auction, as others say, the buyers will have exchanged contracts immediately after you accepted their offer.


So typically, you wouldn't have to give the buyer access to the property to do a survey before completion, even if they want to.

If they do change their minds and fail to complete (which is very, very rare) - typically, you'd have to put the property into the next auction, and add up all your costs/losses.  For example, if the property sold for less at the next auction, that would be part of your losses.

If your costs/losses are less than the 10% deposit - you'd just keep the 10% deposit. If your costs/losses are greater than the 10% deposit - you'd keep the 10% deposit and sue the buyer for the remainder.

t1redmonkey

It is a standard auction company yes, not modern method or anything.  I did ask them earlier and they said the buyers know they cannot negotiate down or they'll risk losing their 10% deposit, so almost certainly it'll go through for that price regardless of what a survey says (if they get one done).  So hopefully that'll be that